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Insolvency Service
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New Ethical Code for Insolvency profession
All the bodies that authorise and regulate insolvency practitioners have agreed a new ethical code for their practitioners which will come into force in January 2009.
The 'Insolvency Ethical Code' (the Code) published by The Insolvency Service, has been designed to assist insolvency practitioners and their staff to undertake their work to high professional and ethical standards.
Based on the five fundamental principles of: integrity, objectivity, professional competence and due care, confidentiality and professional behaviour the Code provides a framework which applies to all aspects of an insolvency practitioner's professional work relating to, or that may lead to, an insolvency appointment. The Code also provides specific guidance regarding pre-packaged administrations; the means of obtaining work; the use of specialist agents; and referral fees. Most insolvency practitioners are qualified accountants and the Code is aligned to a model Ethical Code adopted by the International Federation of Accountants.
Mike Chapman, Head of insolvency practitioner regulation at the Insolvency Service said: "Integrity and objectivity have always been fundamental principles which insolvency practitioners should apply in all aspects of their work. The new Code will provide practitioners with clear consistent guidance on what they can and cannot do in their professional life and assist them to work to high professional and ethical standards".
IPs will be expected to take reasonable steps to identify any threats to compliance and with the fundamental principles. Breaches of the Code of Ethics may be taken into account by an IP's authorising body when assessing the IP's conduct.
Notes to Editors:
1. The Insolvency Service administers the insolvency regime investigating all compulsory liquidations and individual insolvencies (bankruptcies) through the Official Receiver to establish why they became insolvent. The Service also authorises and regulates the insolvency profession, deals with disqualification of directors in corporate failures, assesses and pays statutory entitlement to redundancy payments when an employer cannot or will not pay employees, provides banking and investment services for bankruptcy and liquidation estate funds and advises ministers and other government departments on insolvency law and practice.
2. The Insolvency Code of Ethics has been approved by the Joint Insolvency Committee and adopted by all of the bodies that authorise and regulate insolvency practitioners. It provides a unified code of ethics for all Insolvency Practitioners (IPs) to which IPs, insolvents, creditors and others may refer.
3. Seven Professional Bodies have been recognised by the
Secretary of State to authorise their members to be insolvency
practitioners. They are:-
Institute of Chartered Accountants
in England & Wales
Institute of Chartered Accountants of
Scotland
Institute of Chartered Accountants in
Ireland
Association of Chartered Certified Accountants
Law
Society of England & Wales
Law Society of Scotland
The
Insolvency Practitioners Association
Further information about the work of The Insolvency Service is available from http://www.insolvency.gov.uk
